Understanding premium calculation

SAIF's installment billing process is similar to waves in the ocean—while one wave is retreating back into the sea, another is rolling over the top of it onto shore.

If you are on an annual billing cycle, approximately six weeks before your renewal policy begins, SAIF estimates your premium and bills you for the renewal. The renewal premium is based on the projected payroll of the expiring policy year, and the first installment is due on the 25th of the month prior to your actual renewal date.

On or about that same date, SAIF sends you a payroll report to complete. You must then provide us with your actual payroll for the expiring policy period by the 15th of the month after your policy period ends. (You can report your payroll online at saif.com, mail it, or fax it to us.)

If there is a significant difference between the current year's estimated payroll and the actual payroll you reported for the past policy year, we will update the current year's estimated payroll accordingly. This may adjust your future installments.

After this occurs, you will receive a Policy Change Notice indicating the updated renewal figures and any changes to your installment amounts and/or dates. This document is not a bill; it is informational only.

The next invoice you receive will include a Payroll Report Adjustment, which is the difference in premium based on your reported payroll. The second page of the Payroll Report Adjustment shows the difference between your estimated payroll and premium and your reported payroll and actual premium. This is commonly referred to as a reconciliation.

For more information, please contact the SAIF Service Center at 503.598.5880 or 800.848.2373.

Good to know
By keeping SAIF informed of changes to your estimated payroll throughout the policy period, we can adjust your installments to help you avoid having a significant credit or debit balance after reconciling your policy period. Letting us know about payroll changes also helps us more accurately calculate estimated premium for the next policy period.

These definitions may help you better understand how we calculate your premium:

• Policy period -The coverage period for your policy (generally one full year)
• Estimated payroll or payroll estimate - The amount of payroll you anticipate during the policy period
• Actual payroll - The amount of payroll you had during the policy period, reported to SAIF at the end of your policy period
• Estimated or billed premium - The amount of premium you pay to SAIF, calculated using your estimated payroll figures
• Actual premium - The actual premium due for the policy period, calculated using your actual payroll figures